MEDIA DEMOCRACY PHILANTHROPY PUBLIC SERVICE CHOCOLATE

Sunday, September 11, 2011

Democracy with no Center is a Zero

On a day of tragedy and shared grief, when so many young adults remembered the parent they lost ten years ago and moved us to tears when they said so at Ground Zero, there was one bright, startling ray of hope that emerged from our communal sadness: faced with an evil shared enemy that would do us all down, we Americans failed to hate each other this day.

When I emigrated to America, I began a love affair still ongoing with this vast melting pot of ever-bubbling democracy in action, a gigantic stew of ideas and ideologies free to be spoken and heard, a cauldron of views, counter-views and counter-counter-views expressed widely, openly and with passion. It didn't seem to matter much who you were, where you were from or what you had to say… America gave you your 15 minutes and a microphone to throw ingredients into the ideas pot.

But every two years, through an election process that seemed less corrupt than most anywhere else, leaders were elected by a majority of those who bothered to vote. And the leaders would sit in Assemblies and Houses and Senates and they would discuss, conciliate, find the center and thus exert sensible leadership.

Then something horrible happened. The system broke. Like a gearbox with no oil, there was an awful gnashing noise and the whole noble democracy thing ground to a halt. And everyone got mad at each other and called each other idiots and swore they'd rather die than compromise with such a bunch of ignorant pedants as the other ones, who by the way said the same things about them.

Time for some home truths, time to take the cover off the gearbox and understand how this democracy thing actually works. Time to pour some lubrication around the cogs and start it back up pronto, before we lose the whole vehicle.

Firstly, can we please agree that no democracy can please all the people, all the time? Whether the election yields a 51 - 49 result, or a 60 - 40 outcome, there are almost as many people who didn't get their guy elected, as did. And how democracies have to work, the stage craft if you will, is that the elected leaders have to govern while remembering that damn near half the people disagree with them, don't want them and that those people also have to be factored into their decisions.

Our democracy is in peril not so much from external forces like a rising China and India, nasty terrorists and our declining position in the globally circular economy. No, I suggest the biggest threat to us is actually us: our inability to create a government that builds consensus and rules from the middle. So much yelling and name calling, so much polarized yammering, so many fighting words and pretty soon we are on a slippery slope down to dysfunctional government and paralyzed leadership. I think this is going on right now. And if you look in the mirror with me, you will see the cause: us, and those who encourage our worst instincts so that they can make an extra buck.

There is an equal and opposite extremism going on: don't inflict your own prejudices, fears and loathing… stand back and acknowledge that both extreme ends are nuts, selfish and destructive of a functional democracy: Far Right, meet Far Left, your partners in unhelpful polarizing paralysis. What is going on here? Are we really two countries, so that running the show through a single democratic system is as likely to succeed as herding cats? No, because look here, it has worked really, really well for a couple of centuries. Somehow, improbably and yet most often, the center was found and things progressed forwards in America. But not now. The oil of civilized discussion, the art of sane compromise has burned away in the heat of destructive rhetoric and sound bites.

Who did this terrible thing? Firstly, I blame extremist media on both sides for turning news into polemic, for selling extra advertising by blurring news into an entertainment not unlike the unreality of Reality Television shows, one that panders to the lowest common denominator of human interest, a desire to see people eviscerated and belittled. I blame those cable news shows that on both sides put forth some violently extreme talking head, and as counter-balancing opinion, another nut job who mostly agrees with them. Rah! Rah! let's call anyone who does not toe the same extreme line bad names and laugh at them. Let's call them bad Americans, traitors and worse. Let's make it almost impossible to find the middle. Let's bury the center in a pile of hot language, and the un-clever and superficial analysis of complex and important issues. Let's contribute to national consensus on crucial issues by blowing it up with glib sound bites and slick graphics. Let's demonize the other 49% and treat them as fools.

And I blame most but not all of our political leaders, who, faced with this polarizing media and the polarized voters it has created, fail to lead us back to the center and instead compete for votes based on being even more extreme than their opponent: "I'm a purer version of this lunatic and impractical extreme view than you are" they might as well be saying in the debates going on.

Human thought is not binary. Not all decisions on life and policy have to be reached from the same Republican or Democratic rule book. Why do I have to feel the same way on trade as a party, because I feel as they do on a social issue? Why do views on hugely personal social issues have to be lumped into the same arbitrary bucket as economic views? Why do views on social justice mean I have to view government as the most efficient way to get there? Why does everything have to be lumped into the same bucket, whether it fits or not? Beats me. We teach our children to think for themselves on a case by case basis, but we give enormous power to two parties to tell us how to think on the full range of unrelated issues. Why do we still have a la carte menus in restaurants? Why not, "Republicans, eat this hors d'oeuvre before this entree" and "Democrats, these desserts may only be eaten after these entrees"? What happened to each of us studying the issues, discussing them with peers, and reading divergent views before making up our minds? What happened to personal choice?

The worst enemies we've had to face in wars are the ones who don't give a damn, they just wanted to win and winning meant killing us and taking our treasure. And the worst of the worst are the ones who were or are willing to die to kill us, because they have been persuaded that some other life trumps this one anyway, that this is just a brief loss-leader in the cosmic reality. They are wrong, but they are tough enemies to beat, because they would rather die than lose. They would rather blow up the whole circus rather than negotiate a solution. And that is precisely what we are now seeing in Washington, in our State Capitals and on those cursed cable TV blood sport news programs.

Democracy is a rare and precious flower and it has allowed more progress for more people than any other system ever invented. But it is fragile. You can't yell too much. You can't demonize those who disagree with you. Like all human organisms, from a family to every company in the land, you have to practice the art of compromise. You have to find the best middle, with respect, appreciation and good will.

So this is a plea for equal time for the center: the poor, vilified middle that is actually the best solution to most human challenges when a huge diversity of views has to be served by a single policy outcome. And you journalists of the Fifth Estate, you unelected pontificators whose lapel microphones reach so many ears…. with your bully pulpit comes a responsibility to stand back, respect history and serve democracy. Rabble rousing may sell more ads, but it will never make your children proud, unless you have already brainwashed them too into knee-jerk extremists.

America is for all Americans. If 49% don't agree with you, listen to them and find the middle path please. Compromise is not an illness, it is a noble insight into how to lead our country out of its challenges. Let's try that now. We are the grownups in the room.

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Tuesday, August 02, 2011

The Robin Hood Effect











I spend a lot of time persuading people that selflessness can be selfish. Arguing self-interest in philanthropy may seem like an oxymoron, but in fact it is often the difference between success and failure in fundraising for those of us building non-profit organizations. From my two decades of experience, not only does the strategy clearly work, but in addition I suggest its ethics and morality can oftentimes be admirable and appropriate. Most of us feel the urge to do good deeds and support those less fortunate than ourselves based on our shared belief that we are "all in this thing together" and that the strong should support the weak. Quite often we learn this motivation as a core tenet of our religion or when we are taught a philosophy of life. Certainly, I have taught four children that civilization is fragile and that it is the responsibility of each and every member to improve it and to further build resilient and ambitious social structures to pass on to our children and through them to theirs.
But research shows us that there is also self-interest in helping those less fortunate. Ichiro Kawachi, in collaboration with the Social Environment Working Group of the John D. and Catherine T. MacArthur Research Network on Socioeconomic Status and Health, has demonstrated that the degree of income inequality in a society is related to the health status of that population. Greater income inequality is linked to lower life expectancy, higher mortality rates and worse self-rated health, for the wealthy as well as for the poor, at the U.S. state level. Higher mortality at the U.S. metropolitan level, as well as higher rates of obesity at the U.S. state level, is also linked to income inequality. This association may seem astonishing but it is statistically robust when corrected for differentials of age, race, sex and individual socio-economic characteristics. The bottom line is that affluent people live shorter and less healthy lives the more the people around them are poor.
Why exactly this demonstrable correlation exists is still subject to debate. One can imagine however that one's own health is jeopardized if the man making the salad in a restaurant has inadequate health care and thus a higher incidence of communicable disease. Having worked in several Third World countries where the gulf between rich and poor is gigantic, I can attest to the incremental stress among the affluent caused by protecting themselves... through high walls, armored cars and armed bodyguards, from the potential for theft, violence and dislike by those impoverished souls around them. And stress, as we know, shortens life.
One of most important areas where self-interest is an entirely appropriate motivation for philanthropy is in the brilliant sponsorships I have been able to encourage by Fortune 500 companies. There was a time many years ago when I would fly into the headquarters city of a major corporation. I would visit with the corporation's foundation staff and I would basically beg for their help in supporting one of my children's charities -- "You know that we do good work, you know that we're efficient and that seriously ill children need your help. You are yourself a parent... could you please see a way to making a donation to support these special kids in need?" When things went well I would receive a twenty-five thousand dollar donation for Starlight and be politely asked not to return for another year.
At a certain point, I realized that a worthy cause is capable of presenting a net gain to a major corporation. Put bluntly, a worthy cause can help sell their product or service. So I started visiting with the Executive Vice President for Marketing, rather than with the foundation division of each company. My pitch would be quite different, "In our recent national promotion with Colgate-Palmolive, Starlight demonstrated a twenty-five percent uplift in the brand's Nielsen Scantrack market share. We think we can similarly create a dramatic benefit for your own corporation which will also be very good for Starlight-Starbright's special children". The results were astonishing: instead of receiving twenty-five thousand dollars from the corporation's foundation we were suddenly receiving two hundred and fifty thousand dollars from a cause related marketing campaign. Some of these Starlight promotions have generated in excess of a million dollars each year. I am sure they also sold a great deal of product... and I say 'God bless America' in this regard... a perfect example of the corporation acting responsibly not only to society but also to its stockholders: a true win-win.
And what a wonderful thing to understand from research out of the University of Florida that a fifty cent donation to charity triggered by a consumer's purchase of a product or service generates more of an uplift in sales than a fifty cent discount coupon to the same consumer! This means that, generally speaking, consumers are more ready to help needy children than they are their own pocketbooks. It gives one hope for the future...
I still teach my kids that altruism is an ennobling part of character that enriches the giver as well as our whole civilization. I still teach them that any act, however small, by which we build society makes us part of the virtuous forces which heal the world and build a better life for our descendants. I still teach them that it is better to give a man a job than just to give him money, better to build a bridge then to swim the river, and a terrific thing to apply entrepreneurial skills in a non-profit, philanthropic direction.
But I also tell them that my Starlight, First Star and EDAR are the best possible opportunities to meet like-minded souls, brilliant people who have self-selected themselves as worthy citizen whose enthusiasm for life, children and the future will make great friendships blossom. I accurately tell them of the many marriages that have happened between thousands of brilliant volunteers who found a common bond in helping seriously ill kids. I tell them that this is how their Mom and Dad fell in love.
When I lecture in business schools I always tell the students that their career track or volunteer track in philanthropy will be about ten times faster than in an ordinary business for profit... the charities of America are so needy, so eager and so ready to embrace new ways of achieving their goals that generally speaking the rise of a smart and dedicated young person can be meteoric. People know in the meetings of my philanthropies that it is a dangerous thing to suggest a good idea... one immediately finds oneself the head of a taskforce charged with driving its study and implementation.
And for me personally, I laugh when someone talks to me as though I was some noble soul dedicating time and resources to non-profit causes. I know secretly in my heart that the greatest gift I've ever received was the realization that through good works I would make myself very, very happy. I constantly receive much more than I give.

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Leadership is not Just for Leaders!










I constantly bang away trying to persuade people that philanthropists can force new solutions to major challenges in our lives, in our children's lives, and in the direction of our society as a whole. I take great pleasure in discussing philanthropic plans over breakfast with a wide spectrum of business people, entrepreneurs, philanthropists and causes. I like to think the advice I give, based on my own experiences founding Starlight, First Star and EDAR, may have had some small strategic value and brought a rather large dose of encouragement to some splendid people.

One common thread in these invigorating conversations at Nate & Al's is that people are concerned that if they are not themselves expert, then they may lack the knowledge necessary to exert leadership in complex areas. "How," as one person asked me, "can I hope to effect change through investing my money in cancer research when I know nothing about cancer beyond what I've read in the newspaper?" The answer cuts directly to the core problem of many apparently insoluble challenges to our future health and happiness: there is simply so much knowledge that generalists fear to tread in areas full of experts, areas that cry out for direction, purpose, coordination and plain old-fashioned leadership.

King Henry VIII of Great Britain was not very clever at marriage, but as a king he was probably the last world leader who really did know as much about every subject relevant to running a country as his most knowledgeable experts. He could debate agriculture with his agronomists, military strategy with his generals, economics with his economists (such as they were!) and philosophy with his philosophers. He knew as much about the law as any lawyer and could lecture all comers on history. Was this because he was a highly intelligent man with a king-sized brain?

Far from it: the simple fact was that in the 16th century human knowledge was not yet very extensive. You actually could know just about all of it if you applied your mind. Those days are long gone. The exponential growth of knowledge since then has not resulted in a commensurate increase in the size of the human brain nor in our mental capacity. We are the same old computers trying to process vastly more complex rafts of knowledge and interrelationships of facts. So how have we coped?

We have responded to daunting amounts of knowledge by narrowing our fields of study and expertise. I recently had trouble with my left knee and was stunned by a conversation with the radiologist at the local university hospital. "Tell me" I asked, "how do knees rank against ankles: are they more or less interesting?" The radiologist replied, "I only do knees; I don't do ankles, elbows or any other part of the body. But I do knees from all across the country: the MRIs come in to me electronically, and I make recommendations... but I am the knee man and nothing else." I immediately had to check that yes, he did right as well as left knees. In business, in government and in science we have been forced to drill down very deep to reach the cutting edge of knowledge and expertise. To get there, we have been forced to yield our flanks: our view of the world is very, very narrow, and our experts see things only through the prism of their own vastly specialized knowledge.

This would be fine if the problems afflicting the world could be solved by applying a single area of knowledge. But this is far from true: as the specialists have become more specialized, the world has become more complex. How could one dare to state an opinion on the Middle East without a profound knowledge of history, comparative religion, agriculture, geography, warfare, and land sciences? How could one really begin to apply scarce resources "highest and best" in medical research without first knowing everything about the interrelated sciences that affect the human body?

But we do: we are a society run by specialists who do not personally possess broad knowledge anywhere near the cutting edge of the multiple areas that together comprise the challenges they seek to address. The needs of the large portions of mankind who slip through the cracks of our attention are daunting precisely because they require collaborations of the knowledgeable, which rarely take place. For good or for bad, such is the arrogance of leadership that our lack of knowledge rarely seems to hold back the firmness of our opinions. What, then, are we to do about this?

Firstly, I suggest that an intelligent generalist, especially one with the power to make significant philanthropic contributions, can drive measurable answers to intractable challenges. Secondly, a business entrepreneur who understands the intricate relationship between goal and process can add greatly to the leadership required to crack complex social and medical problems.

I remember some years ago engineering a meeting with General Norman Schwarzkopf. I flew to Tampa to persuade him to become Campaign Chairman of the Starbright World online network for seriously ill children. I was describing how Starbright brought together three different areas of expertise: pediatric medicine, high technology and the entertainment industry, and that we were always yanking the experts back into the middle, toward the goal we'd set for the Network. He stopped me abruptly. "What do you know about the United States Army?" he asked. "Absolutely nothing, sir," I replied. "Well, let me explain it," he went on. "When you join the Army you are not just given a rank, you are also given a specialty. You're a rifleman, a cook, a signalman... it doesn't matter how much you're promoted up the ranks: you always wear your specialty badge until the day they make you a General. And in the ceremony they take away your specialty badge, because you are no longer a specialist, you're a General, and you are now responsible for the overall goals of the military operation." I realized at that moment why focusing on goals in the Army had raised generalists to a position of supreme power. The Army realized that if they put a specialist in charge, they would always be pulled away from the goal and toward the special focus of that individual. Not only was generalism the origin of the word General, but it made absolute sense in a life-or-death battle situation to put in charge someone who could think about overall goals and purposes without getting bogged down in the lattice-work of supporting specialized thinking.

I am reminded of the story of the eminent architects who met in an expensive restaurant over lunch to discuss how on Earth they could retrofit an elevator into a particular old building where it was now required by the Americans with Disabilities Act. After an agonizing discussion of various solutions, none really workable, the young waiter leaned in and asked, "I apologize, but I have an idea where you could put the elevator." The architects were somewhat contemptuous but asked him to tell them where he, a mere server, might think of locating the elevator when they could not. "What if you put it up the outside of the building?" he asked. And they did.

When the financier Michael Milken was forced to address prostate cancer because of his own illness, he did not just inject money into the existing field of research. He redesigned the whole plan of attack. He applied those same intellectual skills he had developed in the bond market with considerable success to new challenges of research medicine, where dozens of highly specialized researchers had tried hard, but never previously worked together "highest and best."

As philanthropists we can do more than just give money to specialists: we can actually coach them to reassess their impact on their goals and readdress the goals themselves.

When we started First Star a dozen years ago, I had nothing but a vague idea that children's constitutional rights were lacking in the United States and that this directly resulted in our poor performance against the rest of the First World in addressing the needs of abused and neglected children. Over these 12 years we have brought together 500 world-class experts from the fields of child psychology, the judiciary, the legislative and executive branches of government, social work, medicine and law enforcement. On not a single occasion has one of these experts asked me why on Earth I think I can presume to exert leadership in a field of two dozen specialties, in none of which am I an expert. On the contrary, I am told all the time that what has been lacking in the past is leadership. That the solutions we have driven by colliding the different expertises together are self-evident, splendid and much to be desired. I take from this that the failure all along has been one of leadership and not one of knowledge.

When Valerie Sobel lost her child, she made lemonade out of lemons: she formed the Andre Sobel River of Life Foundation to provide financial help to families below the poverty line in which the illness of a child is causing the single mother to lose her grip on financial sufficiency. Valerie Sobel has made a measurable difference in the lives of hundreds of afflicted families with a philanthropy she invented herself, by understanding a need and daring to address it. No amount of organizational training or specialized knowledge could have replaced her over-arching concern, compassion, intelligence and refusal to take "no" for an answer in creating her charity.

If you have been lucky enough to accumulate wealth, and/or if you are an entrepreneur in business, you have the power to change the world as you know it. Do not be held back by vague ideas that only a specialist with decades of training can drive solutions to difficult problems. Sometimes exactly what it takes is someone who can question old assumptions. That person can be you, and the world may be a better place if you dare to lead from the front.

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Lighting A Few Bright Candles...



What is the meaning of wealth? This is a question I have wrestled with intermittently for the last twenty-five years. At a certain point, if one is lucky, hard work creates what one needs to live comfortably. Continuous observation suggests that leaving vast sums of money to one's kids is to place a curse on their heads that will more likely challenge than nurture them. So what does one do with the rest?

Chaos Theory teaches us that all systems in the Universe if left unmanaged eventually decay into random nothingness. If that is true, then the quest for civilization is a never ending one: If we wish to bequeath something honorable, helpful and loving to our children's children's children we had better pay attention to the systems within our society which keep it afloat. Passive inactivity is a recipe for decay and atrophy. It really is not an option to sit on one's hands.

It seems to me that there are gigantic opportunities for people who thrive in business to apply the self-same skills to righting some of the wrongs around us. I have tried to focus through a self-invented "entrepreneurial philanthropy" on the grievous challenges of seriously ill children, of those kids who are abused and neglected, and of our urban homeless. It makes no sense to me that in this greatest civilization the world has ever put forth, we so often systematically marginalize our children and other people's children, even though they are our only future. The dark side of the "can do" of the American Dream is to try to fix things after they have broken rather than preventing them from breaking in the first place. For example, two-thirds of the adult males in our prisons were abused or neglected as children. Would it not make some sense to diminish this threat in the future? If self-esteem is so closely tied to living a productive life, should we not be trying to build it wherever we can in our society?

And if half of all foster children are homeless within two years of aging out of the system, wouldn't it be a lot less expensive to use college to get them into productive careers, rather than society paying for the rest of their lives? So why do only 2% of foster kids get a college education? Whose fault is that, and how do we fix it?

There is so much we can productively do by using our resources of intellect, entrepreneurship and a sense that anything is possible if one breaks it down into bite-sized chunks. And, yes, it sometimes takes money as well. Why, as another example, are we not building bridges to develop a strong, prosperous Islamic middle class, probably the only long-term solution to present upheaval in the world, awfulness that will otherwise confront our children for decades to come? And can we really not do better for homeless people sleeping rough amongst us than to give them the cardboard box our Sub-Zero came in?

Some of the most exciting things I have ever done have been through collaborations with like-minded people in philanthropy. An entrepreneur can helpfully exert his or her lateral thinking to serve the planet, not just to take from it. It's really no use to curse the gathering darkness -- much better to light a few bright candles I think.

There is a poem by Shelley called "Ozymandias" about a gigantic crumbled statue in the desert. Erected by a long-forgotten emperor, only the legs still stand. "Look upon my works, ye Mighty and despair!" reads the inscription. That's all that's left! As Theilard de Chardin wrote, "Now is the time to build the Earth." If we want our lives to amount to anything worth remembering, should we not pay attention to the true and lasting value of our legacy -- and have some wonderful excitement while doing so?

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